Gaw Capital Partners has bought 100% ownership of Koentec, a leading waste management company in South Korea. The deal is worth about $500 million and was purchased from E&F Private Equity and IS Dongseo.
This is Gaw Capital’s first investment in the waste management sector and gives the firm a strong entry into Asia’s waste management industry.
Koentec is the largest waste incineration and steam production company in South Korea based on single-site capacity. It also has large landfill facilities. The company is located in the Ulsan Industrial Complex, a major industrial area known for automotive, shipbuilding, and petrochemical industries.
Koentec runs a complete waste management system from one location, making its operations very efficient. The company earns strong profits and has good growth potential by expanding its capacity and making small acquisitions.
Koentec was founded in 1993 by 85 companies in the Ulsan/Mipo Industrial Complex. Over the years, it has built long-term relationships with well-known corporate customers. Many of its business contracts last for more than 20 years.
This acquisition shows Gaw Capital’s plan to grow in the infrastructure sector. The firm aims to use Koentec’s strong market position to expand further in the waste management industry in Korea and across the Asia-Pacific region.
Kenneth Gaw, President & Managing Principal at Gaw Capital Partners, said, “We are excited to see our first waste management infrastructure investment in Asia, a quality addition to our portfolio. Waste management is an essential public service with inelastic demand regardless of economic conditions, providing predictable revenue streams that appeal to institutional investors. This acquisition aligns perfectly with our strategy of diversifying the asset classes we invest in, reinforcing Gaw Capital’s position as a leading multi-asset investment manager. Korea is also a key focus market for our firm, and we continue to look for opportunities to expand our presence there.”
Hyun-Chan Cho, Head of Infrastructure and Head of Korea at Gaw Capital, said, “Koentec holds a strong position in the region, supported by attractive long-term growth potential and a robust financial profile. With high regulatory and capital barriers, proven private-sector operators play a critical role in Korea’s waste industry. We are pleased to invest in a business that advances the circular economy and provides carbon credits to its steam customers, and we look forward to growing the company in partnership with a broad range of stakeholders.”
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